Authors: S.K. Pal, S. Prakash, A. Madhukar, S.P. Mehrotra
Addresses: National Metallurgical Laboratory, Jamshedpur-831007, India. ' National Metallurgical Laboratory, Jamshedpur-831007, India. ' National Metallurgical Laboratory, Jamshedpur-831007, India. ' National Metallurgical Laboratory, Jamshedpur-831007, India
Abstract: Intellectual Property Assets (IPAs) from R&D are central to providing incentives for innovation. While it offers Research and Technology Organisations (RTOs) exclusive marketing rights to exploit their inventions commercially, it is imperative to evaluate their values to appropriate the economic benefits of IPAs. Several empirical models of IPA valuation have been developed based on data, experience and market prices. These approaches cannot be generalised to value IPA. These require direct correlation among the expenditure incurred, the market and the income generated. Much emphasis has been laid on the option-pricing-based valuation method for its direct correlation among patent cost, market and income. This method provides a powerful tool for the valuation of IPAs, which helps to make a decision on R&D investments. This paper intends to discuss various issues confronting the valuation methodologies of IPA acquired by RTOs and provides a suitable approach for the valuation of IPAs.
Keywords: intellectual property assets; IPA value; patent valuation; real options model; innovation incentives; option pricing; R&D investment; research and development.
International Journal of Intellectual Property Management, 2007 Vol.1 No.3, pp.174 - 183
Available online: 04 May 2007Full-text access for editors Access for subscribers Purchase this article Comment on this article